[Minneapolis, U.S.]:University of Minnesota

Date

2015

Pages

39

Subject Country

South Korea(Asia and Pacific)

Language

English

File Type

Link

Subject

Economy < Economic AdministrationIndustry and Technology < Energy

Holding

University of Minnesota

Abstract

The objective of our research is to predict how electricity demand varies spatially between status quo regionally-uniform electricity pricing and hypothetical regionally-varying electricity pricing across usage categories. We summarize the empirical results of a case study of electricity demand in South Korea with three key findings and their related implications. First, the price elasticities of electricity demand differ across usage categories. Specifically, electricity demands for manufacturing and retail uses were price inelastic and close to unit elastic, respectively, while those for agricultural and residential uses were not statistically significant. This information is important in designing energy policy, because higher electricity prices could reduce electricity demands for manufacturing and retail uses, resulting in slower growth in those sectors. Second, spatial spillovers in electricity demand vary across uses. (The rest omitted)